Buy low, sell high
When making investment decisions
Understanding the Rule
Purchase assets when prices are depressed, sell when prices peak. Profit comes from buying undervalued assets and selling overvalued ones. Contrarian thinking creates wealth.
What Happens When You Break It
Buying high and selling low—the natural emotional response—destroys wealth. Following crowds into bubbles and panicking during crashes loses money.
Benefits of Following This Rule
Buying low and selling high builds wealth, creates returns, demonstrates discipline, enables contrarian success, and capitalizes on market psychology.